(RECAP: Minneapolis Federal Reserve President Neel Kashkari unveiled a plot on Wednesday to prevent future government bailouts by forcing the largest U.S. banks to hold so much capital that they would probably choose to break themselves up. Kashkari’s plot would also penalize large asset managers, with the thought that so-called “shadow banks” can make systemic risks similar to that of huge banks. The plot, which would double the amount of loss-absorbing equity capital for large U.S. banks and impose a new tax on hedge funds and other asset managers, is sure to face fierce opposition from Wall Street. Lawmakers such as Texas Rep. Hensarling, who runs the House Financial Services Committee, have also argued for ratcheting up capital requirements to a level that would prompt huge banks to split apart. Senate Banking Committee members Sherrod Brown, a Democrat, and David Vitter, a Republican, have also introduced legislation seeking to raise capital requirements.)

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